What is the hired-non owned automobile insurance requirement for a Kidokinetics business?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
s Manual.
You must obtain the insurance coverage required under the Franchise Agreement, as follows: (i) comprehensive general liability insurance in the amount of at least $1,000,000 per occurrence and $2,000,000 in the aggregate, or in the event you lease commercial office space or storage space, such amount as required by your lease or state laws; (ii) umbrella excess liability coverage in an amount equal to $1,000,000 combined single limit coverage; (iii) automobile insurance in the amount of at least a combined single limit for bodily and property damage of $100,000, or greater if required by state law; and, if you have employees, statutory worker's compensation insurance in the limits required by state law; (iv) hired-non owned automobile insurance; (v) crime insurance for employee dishonesty in the amount of $5,000 combined single limit; (vi) sexual abuse and molestation coverage; (vii
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–24)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees are required to obtain hired-non owned automobile insurance. The document does not specify the coverage amount required for this type of insurance.
Beyond the hired-non owned automobile insurance, Kidokinetics requires franchisees to maintain several other types of insurance coverage. These include comprehensive general liability insurance of at least $1,000,000 per occurrence and $2,000,000 in the aggregate (or as required by lease or state laws if leasing commercial space), umbrella excess liability coverage of $1,000,000, and automobile insurance with a combined single limit of $100,000 (or more, if required by state law). If the franchisee has employees, they must also carry statutory worker's compensation insurance. Additionally, franchisees must obtain crime insurance for employee dishonesty in the amount of $5,000, sexual abuse and molestation coverage, an accident policy, and workers compensation with $1,000,000 limits or such additional limits as required by state law.
Kidokinetics also stipulates that the insurance company must be authorized to operate in the state where the franchisee's business is located and must be approved by Kidokinetics. The insurer must have a rating of "A" or better from A.M. Best & Company, Inc. Kidokinetics retains the right to increase the required coverage amounts or mandate different or additional insurance coverage at any time. All insurance policies must name Kidokinetics and any designated affiliates as additional insured parties, and the insurer must provide at least 30 days' prior written notice before canceling or materially altering the policies.
Because the specific coverage amount for hired-non owned automobile insurance is not detailed in the FDD, a prospective Kidokinetics franchisee should inquire with the franchisor about the required coverage level to fully understand the financial obligations associated with insurance requirements.